Funds advised by Providence Equity Partners, a private equity firm, have made a strategic investment in Sweetwater, an e-commerce provider of musical instruments and audio equipment.
Chuck Surack, founder and CEO of Sweetwater, said, “We are thrilled to partner with Providence to help accelerate our next phase of growth and bring the ‘Sweetwater Difference’ to even more customers. I am incredibly proud of the growth our company achieved over the last year, which would not have been possible without the dedication of our employees and world-class team of music gear experts. I am confident this growth equity investment will allow us to reach new heights and further our mission of enabling customers to make music and pursue their dreams.”
John Hopkins, COO of Sweetwater, added, “Providence is a great partner to continue our momentum and take Sweetwater to the next level. As the world emerges from the pandemic, we believe the firm’s strong track record of helping music-related businesses accelerate their growth will be invaluable. The Providence team appreciates what makes Sweetwater different and we are aligned on how we can further leverage our unique culture to capitalize on new opportunities that create even better customer experiences.”
Scott Marimow, managing director at Providence, said, “Sweetwater’s status as an online industry leader is a direct result of its unique culture and dedication to customer service. We believe the company is well-positioned for sustainable growth as live events return and artists and entertainment companies look to provide the memorable experiences that have been absent over the past year and a half. We are excited to partner with such a culture-driven company and look forward to working with Chuck and team to grow the business together.”
Michael Dominguez, chief investment officer of Providence, said, “Over the past 42 years Sweetwater has built an industry leader with an extraordinary commitment to service that helps customers fuel their passion for music. We are honored to partner with a company that has stayed true to its customers, manufacturers and employees, all while establishing itself as a pinnacle in the music and audio retail space. We’re excited about the growth opportunities that lie ahead.”
J.P. Morgan served as Sweetwater’s exclusive financial advisor and King & Spalding LLP and Carson LLP served as legal advisors to Sweetwater. The Raine Group served as Providence’s financial advisor and Weil, Gotshal & Manges LLP served as legal advisor to Providence.